DEFINITION of 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

A document published by the Internal Revenue Service that details how members of the clergy or other religious workers are to pay Social Security and Medicare taxes. These two types of taxes are collected through either the Self-Employment Contributions Act (SECA) system or the Federal Insurance Contributions Act (FICA) system, but not both. IRS Publication 517 indicates which forms of income are subject to SECA and which are subject to FICA rules.

BREAKING DOWN 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

Whether or not a religious worker is covered under SECA or FICA depends heavily on the type of religious order. For example, religious workers who work for an organization in which a vow of poverty is taken are exempt from SECA, and are thus covered by FICA. A religious worker who does not take a vow of poverty is not exempt from FICA, and is thus covered by SECA. Since SECA is for self-employed workers, different rules apply to how net earnings are treated.

  1. Self Employed Contributions Act ...

    A form of taxes that self-employed business owners must pay based ...
  2. Disability Insurance

    A program managed by the Social Security Administration that ...
  3. Self-Employed Person

    An independent contractor or sole proprietor who reports income ...
  4. Payroll Tax

    Payroll tax is a tax that an employer withholds and pays on behalf ...
  5. Disability Insurance Trust Fund

    An account within the Social Security Trust Fund used to pay ...
  6. World Economic Forum

    A discussion forum for discussing the major issues concerning ...
Related Articles
  1. Retirement

    Is there a way to opt out of paying Social Security?

    Understand more about the purpose of the Social Security system and learn which groups of taxpayers are automatically exempt from the tax.
  2. Retirement

    When Do I Stop Paying Social Security Tax?

    Almost never, unless you belong to one of these special groups.
  3. Taxes

    Small Business Tax Obligations: Payroll Taxes

    Don't leave it up to your accountant - owners are ultimately responsible for fulfilling tax obligations.
  4. Retirement

    Can President Trump 'Fix' Social Security?

    Donald Trump’s plan to replenish Social Security goes in a very new direction.
  5. Retirement

    Are Social Security Benefits a Form of Socialism?

    Socialism is a loaded word in the U.S., but Social Security, one of the nation's most popular benefit programs, is wholly government-run.
  6. Managing Wealth

    Billionaires Who Don't Mix Business With The Bible

    Business leaders such as Warren Buffett and Bill Gates didn't build their businesses on religious beliefs.
  7. Taxes

    Is it Smart to Avoid Paying Federal Income Tax?

    Not paying federal income taxes might sound appealing, but is it really a good idea?
  8. Retirement

    Will the Social Security Cap Increase Help It Last Longer?

    The Social Security cap increase will be 7% in 2017, but even that may not be enough to keep Social Security from running out of funds.
  9. Small Business

    Hiring? Regulations Small Businesses Need to Know

    When a small business becomes an employer, it has new responsibilities. Make sure you familiarize yourself with regulatory requirements.
  1. Are Cafeteria plans subject to FICA, ERISA or FUTA?

    Find out whether cafeteria plans are subject to ERISA, what they offer to employees and which benefits are subject to FICA ... Read Answer >>
Hot Definitions
  1. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  2. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  3. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  5. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center